Thursday, March 14, 2013

AGI may NOT be a good buy

Alliance Global Inc. (AGI) has just disclosed its 2012 income of P20.8 billion. For its current price of 21.65 my computed PE is 10.691. A low PE + AGI is on PSE index (a blue chip). Conservative target price is around P25.

Sorry guys, after double checking it's not a very good buy after all. After checking its disclosure at PSE, the income attributable to shareholders is only 13.6B and NOT 20.8B. This makes it a 16+PE stock. It's still below our average market PE of 18-19 but this is not a VERY good buy, the upside is not very high.

The press release of 20.8B AGI income is just a hype.

Although AGI has a buying spree on the first half of today (March 15), it may already be a good sell at 22.5 if you got it 22 or below.

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